After nearly a year of waiting, Amazon (AMZN) users can now buy a Hyundai (HYMTF) vehicle through the online retailer.
Starting today, Amazon car shoppers in 48 cities, including New York, Los Angeles, and Chicago, can “browse, order, finance, and schedule pickup” of a new Hyundai from local participating dealers directly on Amazon’s website or app.
The biggest advantage of the Amazon/Hyundai service is the ability to have “transparent, upfront pricing,” Amazon said, with no hidden charges such as document fees or dealer-installed options that are infuriating to most car buyers.
“With Amazon Autos, we’re bringing the simplicity and ease customers expect from Amazon to car shopping, one of their largest purchases, while offering dealers a new channel to connect with a broad audience,” said Fan Jin, global head of Amazon Autos. “We’re excited to have Hyundai as our exclusive launch partner and look forward to welcoming more brands and expanding our selection to customers as the program grows.”
In addition to browsing local new Hyundai inventory and completing the purchase online with upfront pricing, users can get an “instant valuation” and trade in their existing car toward the purchase of a new Hyundai. Amazon said users can secure financing via the service or pay in full if they desire.
“We’re partnering with dealers and brands to redesign car shopping — making it more transparent, convenient, and customer-friendly,” Jin said.
While services like CarMax (KMX) and Carvana (CVNA) allow buyers to purchase a car online, these sites only offer used vehicles, not new ones. Automakers like Tesla (TSLA) and Polestar (PSNY) that have eschewed the dealership model in favor of company-owned showrooms exist; however, they can’t operate retail locations in every US state due to dealership franchise laws.
One of the biggest growth pain points for Korean manufacturers like Hyundai and sister brand Kia is their dealership experience, as the two automakers have more of a downmarket reputation. J.D. Power’s dealership rankings found that Hyundai, Kia, Chrysler, Honda (HMC), and Toyota (TM) were the five worst “mass market” dealerships when it came to customer service, while Buick, GMC, Chevrolet, Mitsubishi, and Subaru were at the top.
Jeep, Kia, and Hyundai dealers also have the worst customer experience with regard to their service departments, according to Consumer Reports.
“Listing our inventory on Amazon is a game-changer for how we connect with car buyers,” Steven Suh, general sales manager of South Bay Hyundai in Los Angeles, said in a statement.
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